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CT’s ‘HUSKY for Immigrants’ Program Risks Cost Overruns

by Hyacinth

necticut’s state-sponsored health coverage for children, regardless of immigration status, has seen overwhelming demand, far exceeding initial enrollment projections. The program, known as ‘HUSKY for immigrants,’ began in January 2023 with expectations to enroll 4,250 children. However, by April 2024, over 11,000 children had enrolled, and by July 2024, when the program expanded to include children up to age 16, enrollment surged to 15,000—more than double the forecasted 7,000 for fiscal year 2025.

While supporters of the program are celebrating its success, there are growing concerns about budget overruns. The state allocated $11.5 million for fiscal year 2024 (which ended in June) and $18.9 million for fiscal year 2025 to cover the program’s costs, but these figures were based on much lower enrollment expectations.

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The Department of Social Services (DSS), which administers the program, has yet to determine the exact cost of the program for the previous fiscal year or estimate its current expenditures. DSS officials believe some enrollees may actually be eligible for traditional Medicaid, which would reduce the number of people covered under ‘HUSKY for immigrants.’ DSS expects to have a clearer picture of the program’s financial impact before the governor releases his new budget in February 2025.

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In a statement, DSS spokesperson Christine Stuart explained that the department is reviewing enrollment data to ensure only children and individuals who do not qualify for Medicaid or CHIP (Children’s Health Insurance Program) are enrolled in ‘HUSKY for immigrants.’

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The program provides Medicaid-like coverage for children under 15 and for pregnant or postpartum individuals with qualifying incomes, regardless of immigration status. While the federal government funds about half of the costs for traditional Medicaid enrollees, the state covers the full costs for those ineligible due to immigration status. However, prenatal coverage is partially funded by the federal government, even for those who do not qualify for Medicaid.

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Cost Overruns and Budget Estimates

Estimates from DSS and the Office of Fiscal Analysis (OFA) show that the program has been running over budget. For fiscal year 2024, DSS predicted that providing coverage to children 12 and under would cost around $25 million—$13 million more than the $11.5 million originally budgeted. The governor’s proposed budget adjustments for fiscal year 2025 anticipate a $30 million cost for covering undocumented children, far higher than the $18.9 million allocated for the program.

Draft estimates from OFA suggest that the cost of the program for children could exceed the budget by as much as $20 million in fiscal year 2025, assuming 13,500 to 15,500 children are enrolled. Additionally, the postpartum program is projected to exceed its $5 million budget by $5 to $7 million, while prenatal care costs are expected to be close to the $6.5 million target.

Rep. Vincent Candelora, the House Minority Leader, expressed concern over the lack of accurate financial data from DSS, calling it alarming that the department has not yet been able to determine the exact costs of the program. “We don’t have any easy way of ascertaining the cost,” he said.

Amid the state’s $200 million Medicaid shortfall, Republican lawmakers are pushing for the suspension of ‘HUSKY for immigrants.’ However, Stuart clarified that any suspension would require legislative approval.

Debate Over Program’s Scope and Future

Rep. Jillian Gilchrest, a supporter of the program and co-chair of the Human Services Committee, dismissed Republican calls for suspension as “short-sighted.” She argued that the program helps reduce the financial burden on hospitals by providing preventive care and reducing uncompensated care. “I’m not surprised that the Republicans don’t see health care as a human right,” she said, “but I am surprised they don’t recognize the long-term savings from covering undocumented immigrants with Medicaid.”

While Candelora supports some level of health coverage for undocumented immigrants to prevent hospitals from absorbing the cost of emergency care, he believes the current program’s scope is too broad, referring to it as a “Cadillac” plan.

Sen. Matt Lesser, co-chair of the Human Services Committee, agreed that the program’s costs are likely to come down after the DSS review. He stressed the importance of understanding the broader factors driving Medicaid budget overruns. “I just don’t think the answer is immigrant kids,” he said.

As Connecticut faces a significant Medicaid shortfall, legislators are urging a deeper examination of Medicaid spending. The state’s $3.3 billion Medicaid program is expected to run a $230 million deficit, and lawmakers are concerned about potential cuts to other programs due to higher-than-expected enrollment and utilization.

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